Solar is set to oust coal as the leading generator of electricity within six years, BloombergNEF finds in its latest energy transition outlook, despite a first ever slight dip in installations in 2026. “Solar is the cheapest source of power in many countries, and is proving the easiest and fastest to deploy,” said Jenny Chase, BNEF’s clean power specialist. “Its role in the global energy mix will be substantial, ushering in a new age where power is cheap whenever the sun shines.”

The global economy has reached the “messy middle” of the energy transition where renewable energy and electric vehicles are prevalent enough to affect the demand for fossil fuels without entirely displacing them. This introduces new tensions and volatilities to established industries from energy to transport and countries from Canada to Indonesia.